SOFAZ's sales of foreign currency up by 28 pct

By Ayya Lmahamad

The State Oil Fund of Azerbaijan increased the volume of foreign currency sales by about 28 percent in July compared to June, the Fund’s press service reported on August 4.

It should be noted that the State Oil Fund of the Republic of Azerbaijan sold funds in the amount of $ 515.5 million at foreign currency auctions in July compared to $373.2 million in June.

Thus, in July 2020, the volume of foreign currency sales by the Fund increased by about 28 percent compared to June.

Earlier, it was reported that the revenues of the State Oil Fund of Azerbaijan from oil and gas sales amounted to AZN 4.1 billion (2.4bn), while the average price of net oil during the reporting period was $38.7.

Moreover, for the period of 2003-2019, the State Oil Fund of Azerbaijan transferred $99.7 billion to the state budget.

In the first half of 2020, the volume of transfers from SOFAZ to the state budget amounted to AZN 5.7 billion ($3.3bn).

SOFAZ was established in December 1999 by the Presidential Decree and is a sovereign wealth fund of Azerbaijan, which accumulates and preserves the nation's oil and gas revenues for future generations. The fundamental mission of SOFAZ is to ensure intergenerational equality with regard to the country's oil wealth and to accumulate and safeguard the oil revenues for generations to come.

The Fund accumulates income from the sale of oil contracts, and in 2003 it started to make transfers to the state budget of Azerbaijan. As for now, SOFAZ contribution to the country’s GDP is over 80 percent.

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